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Netflix stock was down more than 10% in after-hours trading Wednesday following the company's announcement that it lost over 100,000 U.S. subscribers last quarter. It was expected to gain roughly 300,000 subscribers.

Why it matters: Analysts weren't expecting the streaming giant to lose subscribers, especially since rival streaming services, like HBO Max, Disney + and NBCUniversal's new service, aren't expected to launch for another year or so.

By the numbers, via CNBC:

  • Earnings per share: 60 cents vs. 56 cents expected, per Refinitiv consensus estimate.
  • Revenue: $4.92 billion vs. $4.93 billion expected, per Refinitiv.
  • Domestic paid subscriber additions: A loss of 126,000 vs. a gain of 352,000, forecast by FactSet.
  • International paid subscriber additions: 2.83 million vs. 4.81 million, forecast by FactSet.

Details: Netflix also announced that it missed on guidance for international subscriber additions. Investors were hoping Netflix could continue to grow international subscribers while domestic subscriber growth stalled.

  • The Los Angeles-based company also missed slightly on revenue, but exceeded earnings per share.

Yes, but: Netflix is estimating higher third-quarter subscriber growth in light of new popular content additions, including the third season of "Stranger Things," which was released in early July, as well as new seasons of "The Crown" and "Orange is the New Black."

Be smart: Netflix also increased prices this past quarter, which may have also impacted subscriber growth.

The big picture: The company is also struggling to convince investors that subscriber growth won't be impacted by the loss of hit catalog series, like "The Office," which is moving to NBC, and "Friends," which will be available on HBO Max.

  • In a letter to investors, Netflix said it has been moving its own exclusive content to tighter windows and that it doesn't think losing catalogs will hurt its business in the long term.
  • "From what we’ve seen in the past when we drop strong catalog content (Starz and Epix with Sony, Disney, and Paramount films, or 2nd run series from Fox, for example) our members shift over to enjoying our other great content," the letter said.

Go deeper: The business of Netflix

Go deeper

UN poll: Most see climate change as global emergency amid pandemic

Swedish climate activist Greta Thunberg (C) fronts a Fridays For Future protest at the Swedish Parliament in Stockholm in September. Photo: Jonathan Nacksrtrand/AFP via Getty Images

64% of people from around the world say climate change is a global emergency, a United Nations poll published Wednesday finds.

Why it matters: It's biggest global survey on climate change ever conducted, with some 1.2 million participants from 50 countries — including the U.S. where 65% of those surveyed view climate change as an emergency.

Collins helps contractor before pro-Susan PAC gets donation

Sen. Susan Collins during her reelection campaign. Photo: Scott Eisen/Getty Images

A PAC backing Sen. Susan Collins in her high-stakes reelection campaign received $150,000 from an entity linked to the wife of a defense contractor whose firm Collins helped land a federal contract, new public records show.

Why it matters: The executive, Martin Kao of Honolulu, leaned heavily on his political connections to boost his business, federal prosecutors say in an ongoing criminal case against him. The donation linked to Kao was veiled until last week.

How cutting GOP corporate cash could backfire

Illustration: Aïda Amer/Axios

Companies pulling back on political donations, particularly to members of Congress who voted against certifying President Biden's election win, could inadvertently push Republicans to embrace their party's rightward fringe.

Why it matters: Scores of corporate PACs have paused, scaled back or entirely abandoned their political giving programs. While designed to distance those companies from events that coincided with this month's deadly siege on the U.S. Capitol, research suggests the moves could actually empower the far-right.

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